Q3 for CRE: Impressive Numbers Found Across All Sectors
By Natalie Jones / 11.30.21 / 3 min read
Banner image courtesy of Photo by Tuan Nguyen on Unsplash
In Q3 of 2021, commercial real estate attained a strong performance across several measures. GlobeSt.com reported several findings from experts. Take a look at the data below!
Nearly 26 million square feet was leased, and vacancy dropped to 16.1% in this quarter.
These figures were reported after companies adopted a “wait-and-see-approach” at the start of Q3 as noted by John Chang of Marcus & Millichap.
Occupancy is now above where it was before the COVID-19 pandemic. Success is also noted in other accomplishments: 28 million square feet of space filled, improved absorption numbers, vacancy that fell by 20 points, and a 2% increase in rents year-over-year.
Not only is this area heading in the right direction, but it is posting records including 273,700 units filled in Q3 and 400,000 units to be finished by developers this year.
Meanwhile, vacancy rate came in at 2.8%, and rents shot up to 11.2% year-over-year.
Although the industrial sector has experienced growth that started last year, largely due to the rise of e-commerce, it continues to reach new levels. 157 million square feet was absorbed in Q3 alone, and the total for 2021 is now 364 million square feet.
“The third quarter delivered better than expected results with some record-breaking space demand numbers,” Chang says. This will likely add more fuel to investor optimism, especially in the office and retail sectors where expectations have been more modest.”
Although each sector of CRE has made progress, recent performances have surprised experts. We’re curious to see how Q4 compares to these set of findings. To read our source, click HERE.